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HIGH COURT OF RAJASTHAN (JAIPUR BENCH)
MR. JUSTICE NARENDRA SINGH DHADDHA, J
Shankar Lal – Appellant
Versus
State of Rajasthan – Respondent
Judgment :
1. This civil first appeal has been filed by the appellant-plaintiff (for short ‘the plaintiff’) against the judgment and decree dated 09.12.1999 passed by the Additional District and Sessions Judge No.8, Jaipur City (for short ‘the trial Court’) in civil suit No. 66/98 whereby the trial Court dismissed the suit filed by the plaintiff.
2. Brief facts of the case are that the plaintiff filed a suit against the defendants-respondents (for short ‘the defendants’) for recovery of Rs. 1,49,490/-. As per the plaint, plaintiff participated in the auction and bid of the plaintiff was highest i.e. at Rs. 77,500/-. Plaintiff deposited 1/4th amount of the bid amount (Rs. 19,375/-) on 10.12.1986 and remaining 3/4th amount was deposited on 27.04.1987 through bankers cheque but the defendants had not given the possession of the auctioned property and also not executed the conveyance deed in favour of the plaintiff. The plaintiff filed S.B. Civil Writ Petition No. 4907/1991 and this Court vide order dated 25.04.1995 allowed the writ petition filed by the plaintiff. In compliance of the said order, on 02.11.1995 defendants executed the registered sale deed in favour of the plaintiff and h
The plaintiff is entitled to interest on the auction bid amount due to the defendants' delay in executing the sale deed and delivering possession.
The court ruled that a bank must deliver possession after auction payment and is liable to pay interest for undue delay, emphasizing legal and equitable obligations.
The defendants wrongfully debited interest and failed to transfer possession as per the agreement; the plaintiff had not defaulted on payments.
The main legal point established in the judgment is the importance of strict compliance with auction terms and conditions, balanced with the consideration of communications and extensions provided by....
The court established that the interest awarded should not exceed 6% per annum as per Section 34 of the C.P.C. and considered the plaintiff's lack of seriousness in pressing the claim for interest.
An auction purchaser cannot claim ownership or additional payments until the auction sale is confirmed, and the 5% penalty only applies to actual amounts deposited as per CPC provisions.
Court upheld contractual interest of 18% from pre-suit period while awarding 9% future interest post-decree, reflecting equitable considerations of a commercial transaction.
Settlement deeds must respect prior court orders and creditor rights, and possession claims must consider prior judicial outcomes to uphold judicial integrity.
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